A. The planned expenditure line will shift upwards, because people will pay more in the shops on tobacco products.
B. The planned expenditure line will shift downwards, because people will buy fewer cigarettes, so their spending on tobacco after allowing for the tax will be lower.
C. The withdrawals line will end up shifting downwards, because the rise in the tax will cause people to save less.
D. The injections line will shift downwards, because this includes all government spending net of taxes.
A. £625 billion in year 1 and £560 billion in year 2.
B. £625 billion in year 1 and £700 billion in year 2.
C. £500 billion in year 1 and £560 billion in year 2.
D. £500 billion in year 1 and £700 billion in year 2.
A. An increase in the demand for money will shift LM right.
B. An increase in the supply of money curve will shift LM right.
C. It shows that the higher is the level of output, the higher is the equilibrium rate of interest.
D. The more interest elastic is the demand for money, the more interest elastic is the LM curve.
A. If AR at this output is below SAC.
B. If AR at this output is below AVC.
C. If MR at this output is below SAC.
D. If MR at this output is below AVC.
A. If there is excess demand, the price will rise.
B. If there is excess supply, the price will fall.
C. If there is no excess demand or excess supply, the market will be in equilibrium.
D. A market which is out of equilibrium will always move rapidly to the equilibrium.
A. Each firm makes an assumption about how much the other will produce, and sets its own output at the level which will maximize its profit if the other firm behaves as assumed.
B. Each firm has a reaction curve showing its chosen output for different outputs that the other might set.
C. The equilibrium is where the reaction curves intersect.
D. If the duopolists produce homogeneous products, then the equilibrium price will be the same as if the industry had a monopoly.
A. A switch from a marginal cost pricing rule to a two-part tariff.
B. A switch from an average cost pricing rule to rate of return regulation.
C. A switch from rate of return regulation to revenue cap regulation.
D. A switch from revenue cap regulation to price cap regulation.
A. Its production possibility frontier would shift.
B. Its production would shift to another point on its production possibility frontier.
C. The pattern of products that the country produced would differ from the pattern that its consumers consumed.
D. Consumers would be able to consume at a point outside the production possibility frontier.
A. A change in the demand for the product it makes.
B. A change in the number of other firms in its industry.
C. A change in the price of a fixed input.
D. A change in the price of a variable input.